{"id":1784,"date":"2013-06-30T06:17:05","date_gmt":"2013-06-30T12:17:05","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1784"},"modified":"2013-06-26T10:17:24","modified_gmt":"2013-06-26T16:17:24","slug":"prompt-pay-means-prompt-pay","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/prompt-pay-means-prompt-pay\/","title":{"rendered":"Prompt Pay Means Prompt Pay"},"content":{"rendered":"<p>Stan Martin &#8211; June 18, 2013<\/p>\n<p>A contractor sends an inflated invoice to an owner for a completed project.\u00a0 The owner fails to pay anything against that invoice \u2013 even the amount that had been agreed to.\u00a0 The contractor eventually files suit, the court awards interest plus penalties of 1% per month on the unpaid balance, and the interest and penalties add almost fifty percent to the original amount due.\u00a0 There\u2019s a lesson here.<\/p>\n<p>In the case of Dorr v. LaCoste,[1] the Vermont Supreme Court held that the owner had an obligation, under the VT prompt pay act, to pay undisputed amounts upon receipt of an invoice.\u00a0 Thus, the contractor\u2019s invoice, though initially inflated above what had been agreed upon as the project cost, could not simply be ignored.\u00a0 The owner was obligated to withhold only that amount which was in dispute, i.e., the amount in excess of the agreed price.\u00a0 It also appears that the owner did not engage the contractor in any conversation about what the owner thought should be the correct amount.\u00a0 When the owner chose not to pay anything, and wait for an appropriate invoice, then the penalties of the Vermont prompt pay act came into play.<\/p>\n<p>The lesson?\u00a0 Ignoring an inflated invoice and not even paying undisputed amounts may result in prompt pay act sanctions, thus enlarging the amount ultimately due.<\/p>\n<p>[1] \u00a02013 Vt. Unpub. LEXIS 109 (Vt., June 2013).<\/p>\n<p>via <a href=\"http:\/\/blogs.duanemorris.com\/duanemorrisconstructionlawblog\/entry\/prompt_pay_means_prompt_pay\">Prompt Pay Means Prompt Pay : Duane Morris Construction Law<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stan Martin &#8211; June 18, 2013 A contractor sends an inflated invoice to an owner for a completed project.\u00a0 The owner fails to pay anything against that invoice \u2013 even the amount that had been agreed to.\u00a0 The contractor eventually files suit, the court awards interest plus penalties of 1% per month on the unpaid&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/prompt-pay-means-prompt-pay\/\">Continue reading <span class=\"screen-reader-text\">Prompt Pay Means Prompt Pay<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,172],"tags":[370],"class_list":["post-1784","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-law-2","tag-construction-invoice","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Prompt Pay Means Prompt Pay - Advise &amp; 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